the fund. >> okay. anyone else? okay happy holidays everyone. our next meeting will be before christmas but happy holidays anyways next item? >> item 10. and item 11. >> thank you very much we adjourn at 1: 38. is that a record?

>> >> the meeting will now come to order. welcome to the meeting. my name is malia cohen. to my left is supervisor tang and campos. i would like to thank sfgtv for broadcasting this meeting. >> madam clerk, are there any announcements? >> the clerk: please make sure to silence all cell phones and electronic devices. speaker cards should be submitted to the clerk. items will be appear on the board of supervisors agenda unless otherwise stated. >> very good. please call item no. 1. >> the clerk: item 1: 131008:hearing - eastern neighborhoods plan infrastructure improvements]1310081.sponsor: cohenhearing on the city's

strategy for funding and implementing the estimated $250,000,000-$390,000,000 of infrastructure improvements that have been identified to support new development in the eastern neighborhoods plan. 10/8/13; received and assigned to the government audit and oversight committee. >> the clerk: item 1: 131008:hearing - eastern neighborhoods plan infrastructure improvements]1310081.sponsor: cohenhearing on the city's strategy for funding and implementing the estimated $250,000,000-$390,000,000 of infrastructure improvements that have been identified to support new development in the eastern neighborhoods plan. 10/8/13; received and assigned to the government audit and oversight >> the clerk: item 1: 131008:hearing - eastern neighborhoods plan infrastructure improvements]1310081.sponsor: cohenhearing on the city's strategy for funding and implementing the estimated $250,000,000-$390,000,000 of infrastructure improvements that have been identified to support new development in the eastern neighborhoods plan. 10/8/13; received and assigned to the government audit and oversight committee. >> 1234 this is an item i introduced a few weeks ago to discuss the status. the key component of the planning process was a development of open space and transportation plans that identify key projects that are semi to supporting neighborhood growth. when the plan was adopted, it was actually estimated over the 20-year build out of the eastern neighborhood that we would need approximately $250-390 million to fund these improvements. these were estimated only at the time and now we find we'll receive only

$116 million for these and that is a funding gap in improvement. we have not seen many of the infrastructure projects the plan has implemented. in some cases the key transit improvements are under review. we have all agreed that most of the development is needed and appreciated. at the city we must live up to our end of the bargain and provide infrastructure to support those that are living here as well as the future for those that will live here. last month we were at the meeting for the eastern neighborhood plan and the questions i heard were the promised benefits for streetscape and infrastructure improvement. we knew there was

a funding gap. we hope to begin to develop a multi-agency strategy to address the funding gaps and some of these projects implemented before we entitle hundreds of more units in the neighborhood. we have done a good job in the development community has been successful in moving the projects forward. i think we as a city have done a good enough job finding and implementing the infrastructure needed to insure these neighborhoods stay walkable and livable and transit first. i don't expect we'll have all the answers today but i think we need to have a conversations and this is a first step in that conversation. we have a series of departments here today who are going to assist us in understanding the pipeline. in some ways the city is thinking that we maybe able to close the funding gap. we are going to hear from jon ram

-- john graham of the planning department. thank you. >> thank you, good morning, supervisors. i want to thank supervisor cohen for calling this hearing. this is an issue that has come up for several years now and now more acutely felt this is happening all over the city and this is an issue we need to address and an issue that the planning department cares very deeply about. i'm one of several speakers today, we have various people here today to talk about this. we have a presentation that we'll try to get through quickly but there is a lot of information we would like to share with you. i will start by saying the story is perhaps a little bit better than the perception.

certainly there is a lack of funding primarily because of the lack of development activity. with the development activity that is coming we feel fairly confident that some components of the proposed plan, the amenities that are proposed in the plan particularly on the open space and public facility side can be addressed. the other aspect of the improvements particularly around transportation and streetscape improvement you have a very high price tag. we think we have some very good information for you coming out of the mayor's task force and we can address those issues as well. i think it's important to point out the improvements were not all addressed through impact fees. the impact fees are only part of the sources for those improvements. what it has done is allowed dollars for some of those spaces and we are

able to leverage dollars from other sources whether it be state grant monies or other developments doing those kinds of improvements. there is a number of ways the impact fees help us address these issues. having said that, i would like to move forward quickly and discuss what we have for you today and set some contacts. we are going to talk about the contacts and pipeline and the information we set out to make some of these improvements, the funding strategy and how we propose to deliver the projects and how we are supposed to prioritize them. it's important to talk about regional growth because it's one larger picture. obviously region is growing and projected to grow by 2 million people in the next 5 years and almost 100,000

housing units and we think it's because of our quality of life and the region in the country and the state. san francisco is expected to accommodate about the 15 percent of that growth. that is a small number but we still need to accommodate about 190,000 jobs and 90,000 housing units and that will take us to a million people. to reach these numbers, as you can see we would need to on an average basis produce about 6,000 jobs a year. we have not come close to those numbers in the last 15 or 20 years. it's the pace of growth and i realize it's troubling to some but those numbers reflect our share of

regional growth. again, just to look at the recent plans, the department has spent the last 15 years doing plans for those parts of the city where the growth will happen. if you look at this map, this is the growth plan for housing. the eastern neighborhoods represents about 12 percent of the city's growth. so, it does represent a fair amount, but it does not represent the majority of growth that is proposed in the city that is largely in the downtown south of market and shipyard and candlestick and treasure island. these are neighborhoods that represent roughly 12 percent of the growth in the city coming as a whole and on-the-job side. where you see the vast majority of sides that are proposed on the downtown south of market and hunters point with about 8

thousand of those jobs in eastern neighborhoods. just to give you a run down. all of the numbers that you see right now represent the numbers that are projected in housing and jobs and all of the areas where we have done plans. we have done plans in these areas for 80,000 housing units and 8,000 jobs. it's projected for 2040. that 15 percent that i talked about earlier, we are still short particularly on-the-job side accommodating 50,000 new jobs. all the planning we've done we need to do more to figure out how to accommodate our share of

regional growth. to focus more on the neighborhood, as you know the neighborhood plan areas there were 5 of those plan areas, sewn -- sonoma and the water front where a lot of changes were happening prior to the development of the plan. in the middle of this area is mission bay with it's substantial job growth as well. if you look at the pipeline in eastern neighborhoods. this gives you a quick graphic to show you where the projects are growing. it's pretty scattered across the entire neighborhood. this is showing you the status of some of these projects whether they are under review, or approved or under construction. there is a pretty broad geography of where this is happening on both the job

and housing side. if there is any concentration, there is the transit corridor which is the plan to focus along the corridor where it could be accommodated on the streets that have more transit service. just to look again at the numbers, the initial projection were there the plan were to produce about 10,000 jobs and 3 million square feet of non-residential space. the current plan of what has been completed and the pipeline is 700 of those units have been completed or under way and about a million square feet of that non-residential space. we are seeing a big upsurge because of the current economic conditions but as you know, the first 3 years after the plan was adopted we saw very little

activity. as you spread that out over the five period, the number of that average is still not number that we had projected or looking to need in that area. with that, i will turn it over to adam from the planning department who will go over with you the implementation network. adam leads our implementation in the department that was set up after the plan was adopted to make sure the plan was carried forward across the city. thank you. good >> good morning, we are charged with the infrastructure pieces of our adoptive plan and working with other agency with

our capital plan for the impact fees coming towards the infrastructure projects. speaking to the eastern neighborhoods specifically unlike other planning areas the eastern neighborhood didn't define a specific set of capital projects, a comprehensive -- set mainly due to the large area of the city. it did set out a general framework that sort of set out areas where we would need more additional open space, community facilities, streetscape enhance -- enhancement and specific bicycle and also capital projects but more generally a framework for on going planning

and prioritization as we move through the implementation plan. we have done a number of specific follow up plans that show open face plans and mission district streetscape plan and the project. these went through a public process to find specific infrastructure upgrades and projects for their specific areas of the eastern neighborhoods and provided more definition for those projects. they also created projects that had gone through this community process as well as in some cases provided environmental review at the project level so you have much broader set of capital projects that are sort of project ready and grant ready and more competitive for competitive funding sources. so that's the sort of additional planning that we've done. eastern neighborhoods as you

mentioned in your opening remarks has an implementation strategy that relied partially on impact fee revenues and partially on other sources for funding. i'm going to talk about the development impact revenue here. new development in the revenue plan areas in the other more recent adoptive plan areas for development impact fees on a per square foot basis per growth. the new areas is the increase in the development potential given in the eastern plan. where more development potential was created through the rezoning of the plan through various zoning and higher rate of fees. really, the fees were set out and they are intended to pay for a portion of the infrastructure improvement, about 30 percent by the initial calculations and the idea there

is that by having the impact fees we have a local source of funding that we can use to match and make ourselves more competitive for additional funding and leverage additional funding. a little bit on the mechanics of the impact fees they go to these three categories, open space and streetscape and open facilities. these are written into planning code and when we go into the planning process we have the amount we spend by the amount of these categories. within the categories, as part of the eastern neighborhood, the adoption, the board set a priority project for each of the funds for those categories need to go to. for open space the impact fee revenue need to go to these two projects in folsom park show square with open space. with the the

category, the major projects were 16 street and folsom street through soma to create a main street there and a couple other projects that are not listed here. here is some of the numbers from the initial eastern neighborhood documents that we estimated about $160 million of impact fee revenue. i should mention they included the eastern documents and the soma plan, all of these numbers include both of those plans. what we are seeing to date as john mentioned the first few years of the adoption we didn't see a huge amount of growth. so concurrent with that we saw a relatively small amount of impact revenues and in the next five 5 years we would project that we generate a significant, a higher amount. our numbers

are based on the pipeline, applicants that are under review and expected time for when they would pay their impact fees to the city. this next slide shows that more graphically, so up until now, we have not seen a significant amount of impact fees but in the next 5 years we expect to see more. that's the gray boxes. the green bar is money that was put into this years capital budget for the couple of eastern neighborhood projects for 16 street. this slide breaks that down further so you can see the impact fees come in, it's sort of lumpy and depends when projects get there. the construction documents and the impact fees. in the fiscal year 14-15 we expect a bump and in fiscal year 17 we expect another bump

and that's based on whenever the applicants are in the process. i'm going to go to the capital projects status that are identified in the plans specifically the priority projects and give sort of a general overview but we have mta, dpw to speak on the status of these specific projects. there were 16th street and folsom street. 16 street was part of the eir. that is moving forward. we also had impact revenues dedicated to 16th street project as well as that capital budget allocation that

equals out to nearly $2 million and that's due to a conceptual report that will take that project to the next detail. we -- mta can speak into more detail on this project. and the project came out of folsom street through soma. sort of central and western soma and create a more pedestrian and bicycle and just sort of neighborhood street there where it's currently serving a high speed volume. we have a significant amount of funding through this project through our impact fee programming. about $20 million in projected funds starting in fiscal year 17. and this project is wrapped up in the central soma eir. it used to be called central

corridor and that plan may generate funds for this project as well. in the open category, 17 and folsom is one of the projects. this is a project that we dedicated $17 and folsom is one of the projects. this is a project that we dedicated a couple million dollars to impact revenue and $2.5 million from the state and that's a good example of being able to leverage outside sources for impact revenue. it's under design and we -- they are here and they can speak more on that the other project where in open space we went through planning process to identify and prioritize open space improvement in that neighborhood and we went to the neighborhood cac and they identified the park side with the triangle development and this project is subject to in

kind agreement and they will be building it as part of this development when that moves forward. just to make the point there are a number of other projects that are funded through impact fees. here is a list of projects that are partially funded that portrero was completed and other projects here are slated to receive funds at the end of this fiscal year. there is revenue for the next 5-year period and we have other projects for in kind agreements and also shows further examples of whenever we are able to leverage funds like the mercado plaza. the 22nd street project we have allocation of $2 million for

that project in the impact fee revenue down the line. just to make the point that impact fees are not the only funding source for eastern neighborhoods. we have been going out to getting a number of grants for the eastern neighborhood. many came out of the district streetscape plan and others come from other local and state funding sources. and finally these are projects that are moving forward that we expect program funds that are non-impact fee revenue funds but at the same time meet the goal of implementing the eastern neighborhood projects and they come from a -- variety of funding sources, outside grants and streetscape funding and street bonds. lastly i'm going to talk about other projects on how we identify and move projects

forward. we work closely with cac. they meet monthly and basically advise the city on expenditures andal -- allocations of impact fee revenues and working with other agencies and cac to impact these revenues towards the representation that we see the board. we are finishing up this year's report and bringing it to the board in january, i believe. this you for your time. i believe that keith goldstein from eastern neighborhood is here to say a few words at this point. >> great. thank you so much. keith, adam, why don't you come up and present to us briefly on what the cac's role is. >> good morning, supervisors. as you know the cac is ground

zero for development in san francisco and developing presentations and i have lost track of the number of developers and architects who have come to our meetings and told us their grandmother was born in a little house and they would like nothing more than hanging out over a cup of coffee at foaleys. this is for funding and implementing infrastructure improvement and we believe the eastern neighborhoods that receive this attention. we have seen so many projects come from this area. the neighborhoods and new open

space along the center water front. 16 street, folsom street and 22nd street and the eastern neighborhood cac has approved some agreements which appear to be beneficial to the whole community. however we are very concerned about this large gap in funding for infrastructure improvement to accommodate the huge growth. revenues maybe as much as $160 million that is far short of the $250-395 that is included nd needs assessment as muchs $180 million and we have no plans on fixes that funding gap. now the eac is concerned about the funding for

support for transportation. support for shuttle services and better transit is most welcome. we want $20 million of impact fees goes towards the project. maybe it will address our neighborhoods to list affordable housing, green space, park improvement, child care and streetscape and pedestrian and bike improvement. the cac does keep traffic of the funding mechanism the city is considering. we welcome the opportunity to suggest new funding mechanisms. whatever happened to ifd, i thought income hill was going to be for what might occurring in the eastern neighborhoods. how about tiffs and how about the using the revenue for the

infrastructure. what about community development directs. we urge the city to use the increased revenues for this development lot directly for public benefit needs in the eastern neighborhoods. thank you. >> great questions you raise. thank you. we'll get some answered today. next we'll have monique yamamoto to discuss the funding strategies and she'll be focusing on the transportation task force which has laid out the overall transportation strategy for the city. hi monique? >> good morning and members of the board of supervisors committee. the mayor's task force that i think you have heard of preliminary set of recommendations and findings of the mayor's task force. but i'm here this morning to speak to you about how some of those recommendations could apply to the eastern neighborhood hearing. as you know, the task

force is concentrating on infrastructure and not operating expenses nor is it looking at parks and other kinds of concerns within this particular hearing. the task force has been examining the needs for capital programming across the city in light of the kinds of conditions our transportation system is in now as well as the new growth, both in terms of residents and jobs in the city. and so the scope of the task force work does not address the operating deficits nor does it solve all of the problems that have been identified. about $10 billion have been identified as a need for transporti